Core Viewpoint - The release of the fourth set of life tables by the Financial Regulatory Bureau and the Actuarial Association marks a significant update for the life insurance industry, with implications for product pricing and risk assessment starting January 1, 2026 [7][9]. Summary by Sections Life Table Update - The fourth set of life tables will officially be implemented starting January 1, 2026, following the previous update in 2016 [9][7]. - The new life tables reflect an increase in life expectancy, with an average increase of about 10 years compared to the first set [8][3]. - The average mortality rate has decreased by approximately 20% compared to the third set of life tables [22][31]. Pricing Implications - The decrease in mortality rates and the increase in life expectancy raise questions about potential price changes for insurance products [9][13]. - Risk protection products like term life insurance may see price reductions, while survival products such as annuities may experience price increases [13][42]. - The specific impact on pricing will vary by company, as product pricing is influenced by individual actuarial assessments [43][42]. Product Classification - The fourth set of life tables includes four tables, with the addition of a single life table reflecting individual mortality rates [14][15]. - The classification of products has been slightly adjusted, with non-pension life insurance products categorized differently based on their primary risk coverage [19][20]. - The focus on pension-related products has been emphasized due to the increasing aging population [17][18]. Life Expectancy Insights - The new life tables indicate an increase in life expectancy, with males expected to live an average of 85 years (up 2 years) and females 89 years (up 1 year) [36][33]. - The life expectancy reflected in the life tables is generally higher than the national average, suggesting that insured individuals may have better health management practices [39][36]. Regulatory Requirements - Insurance companies are required to regularly review mortality rates and adjust their pricing models accordingly, ensuring compliance with the new life tables [45][46]. - The regulatory framework emphasizes the importance of actuarial accuracy and the need for companies to establish mechanisms for evaluating deviations from expected mortality rates [46][45].